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Nigeria, Germany to Improve Trade Ties

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Dr. Okechukwu Enelamah
  • Nigeria, Germany to Improve Trade Ties

Nigeria together with some African countries would seek to improve trade and investment ties with German at Germany-Africa Business Forum slated to hold at Frankfurt on March 23.

This is contained in a statement posted on the Germany-Africa Business Forum website and accessed by the News Agency of Nigeria (NAN) in Abuja on Thursday.

The statement said that the Nigeria’s Minister of Industry, Trade and Investment, Mr Okechuckwu Enelamah, would be attending the forum.

“There is already a strong foundation of trade relations between Nigeria and Germany and an even stronger rationale to expand upon them.

“Nigeria is Africa’s largest economy, one of its most stable democracies and boast of a business-friendly climate.

“It is whether in construction, manufacturing or technology, German companies carry a legacy of innovation and know-how that can deliver tremendous value for both sides,” the statement quoted Enelamah, as saying.

According to the statement, Africa is a priority for the German Government in 2017 as it holds G-20 presidency.

“There is much consensus for building trade relations; Africa is world’s fastest growing region and German companies need to find new markets.

“This year, Germany will host the first ever privately held event exclusively dedicated to strengthening trade and investment ties between Germany and the African continent.

“It will capitalise on a wave of interest taken by the German government and companies to increase their engagement with African countries.’’

Last October, the statement stated that German Chancellor made a three-day visit to Mali, Niger and Ethiopia, vowing that Africa would be a major focal point of its G-20 presidency, which began in December, 2016.

It stated that even with annual trade with Africa of 60 billion dollars, Germany had lagged behind other countries that had done more to seize trade opportunities.

“The Germany-Africa Business Forum will seek to familiarise German companies with the continent and diversify their investment base.

“Out of more than 10 billion dollars in German investments on the continent each year, 90 per cent is with just three countries – South Africa, Nigeria and Algeria.’’

According to the statement, there is a consensus that Africa remains ripe for German investment, from small-startups to industrial giants spanning the economic spectrum.

“German Mittelstand companies are already showing an interest in places where their skills and technology can bring value.

“Germany shows a strong need to expand to new markets, with companies doing just two per cent of their business in Africa.’’

In addition, the statement said that the time to strengthen German-African trade and investment connections had never been greater.

It stated that six of the world’s 10 fastest growing economies are in Africa and the continent is projected to be the world’s fastest growing region until 2040.

NAN reports that the Germany-Africa Business Forum (GABF) seeks to “bridge the gap” by facilitating dialogue, business dealings and dynamic commercial and political interchange.

The GABF brings together Africa’s foremost executives with German companies, policymakers and innovations with the aim of driving change.

It draws together African Business, political and society leaders with Germany’s pre-eminent companies and dynamic commercial and political interchange.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Portland Paints, Chemical and Allied Products Plc Agreed to Merge

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Portland Paints

Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Portland Paints and Products Nigeria Plc and Chemical and Allied Products Plc have agreed to merge, according to the latest statement from both companies.

In a statement released through the Nigerian Stock Exchange, the Board of Directors of CAP said we are “pleased to inform you that following discussions and negotiations, the Boards of CAP and Portland Paints have reached an agreement to undertake a merger between both entities (the “Merger” or the “Proposed Merger”).

Accordingly, we “hereby present to you the terms and benefits of the Proposed Merger for your consideration and seek your support and approval to effect the Proposed Merger.

“The Proposed Merger presents a compelling opportunity to create significant value for shareholders of CAP and achieve the company’s strategic growth objectives as a larger company with a broader product portfolio, more corporate owned brands and diversified revenues.

“The resultant entity is also expected to benefit from enhanced distribution capabilities in addition to economies of scale and operational efficiencies.”

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Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

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Shell

Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

Tony Elumelu owned Heir Holdings Limited and its related company Transnational Corporation of Nigeria Plc on Friday announced it has completed the purchase of 45 percent stake in Oil Mining Lease (OML 17) through TNOG Oil and Gas Limited.

The acquisition includes all assets of Shell Petroleum Development Company of Nigeria Limited (30 Percent), Total E&P Nigeria Ltd (10 percent) and ENI (five percent) — in the lease.

It was further stated that TNOG Oil and Gas Limited will also have the sole right to operate OML 17.

The field presently has a production capacity of 27,000 barrels per day. Also, there are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of oil equivalent.

A consortium of global and regional banks and investors provided a financing component of $1.1 billion for the largest oil and gas financing in Africa in over a decade.

In a statement released on Friday, Shell said the completion was after all the necessary approvals have were received from authorities.

“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.

Speaking after the completion of the deal, Elumelu said “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.

“I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”

Tony Elumelu is the Chairman of Heirs Holdings Limited, Transcorp and United Bank for Africa Plc.

Also, read Transcorp Plc Acquires FGN’s 100% Equity in Afam Power for N105 Billion

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Exporters Say CBN Pre-export Requirements is Frustrating Export of Goods

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Institute of Chartered Shipbrokers

Exporters Say CBN Pre-export Requirements is Frustrating Export of Goods

Exporters have said the recently introduced pre-export requirements by the Central Bank of Nigeria is creating unnecessary bottlenecks for exporters and the movement of goods out of the country.

Exporters, who spoke under the aegis of the Network of Practicing Non-oil Exporters of Nigeria (NPNEN), said the electronic Nigeria Export Proceed Form now required by financial institutions from exporters had come with so many challenges.

Ahmed Rabiu, the President, NPNEN, explained that the new policy had several requirements that often led to delays and loss of income on the part of exporters.

He said, “We acknowledge the CBN’s desire to ensure that all exports out of Nigeria are documented in order to ensure that the proceeds of such exports are repatriated.

“However, the reality on the field shows that the process is causing undue delays and consequently, encouraging corruption.

According to them, in the new pre-export requirements, the Central Bank of Nigeria wants an export transaction to be initiated through eNXP processing on the trade monitoring system.

After which exporters are expected to have a pre-shipment inspection agent, the Nigeria Customs Service and other designated government agencies carry out their pre-export inspections.

The exporters said the pre-shipment inspection agent was expected to issue a clean Certificate of Inspection while Customs would issue the Single Good Declaration. All these they said takes time and delay goods from leaving the country on time.

Pointing to a recent report, they said about N868 billion worth of goods bound for export were stuck at the ports due to the new policy.

Speaking further Rabiu said, “For example, for the PIA to issue the CCI, the exporter is required to upload a certificate of origin as one of the supporting documents for the eNXP.

“The PIA is also required to upload the CCI to the TRMS(M) and until this is done, the Customs service will not issue the Single Good Declaration.”

He added, “After issuing the SGD, the customs is further required to upload it into the TRMS before the goods are allowed to be gated into the port and loaded on the vessel by the shipping line.

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